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Exchange rate for tax forms


Chrissie

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Does some bright soul know the exchange rate from £ to Euros for use in the 2005 tax declarations?  There's usually someone who posts it just after I have finished my calculations!...

(Sorry if this has already been answered elsewhere, but I did try a search....)

Chrissie (81)

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Funny Chrissie my search for "exchange rates" found this post, by me........... [Www]

"I would agree with £1 = 1..45€ for a fair rate of exchange ,but be aware than in areas with a high density of English settlers, you may get told by your tax office the exchange rate to use"

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I printed off a spreadsheet listing my monthly pension receipts by date, sterling amount, exchange rate as shown on that month's bank's transfer advice note, then finally, the calculated euro amount. The tax man looked at it and said yes, that was fine.  I had my fingers crossed because this method of calculation was marginally in my favour compared with the average "official" rate.

I also used the same "spot" exchange rates for my monthly UK bank interest and he was OK with that too. 

Cheeky, or what....[:)]

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No SD that is quite a reasonable way of doing it, the only time you need to do an average £/ € conversion is where you are getting interest added to a sterling savings account in the UK.  If you got 1 40€ for your pound from your bank, then that is what you got.  When you declare on line they are taking you on trust anyway.  In theory if you took all your money out of the hole in the wall and not by transfers, (which would be a bit daft if you pay charges on such transfers), and  only got the "Tourist" rate of whatever, then that is what you should declare, nobody is being cheated provided that you can support the rate  you used if asked.
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I think the fact that I'd done all the work beforehand went some way towards our "helpful" meeting, in that we were discussing and agreeing concepts rather than him having to do my tax declaration for me.  My pension exchange rates were based on payment on the 20th but although the interest was applied to my UK sterling account at month end, he accepted the same exchange rate figures, so I think he wasn't too bothered about any fluctuation which may have occured over that 10 days period

In my experience, he was just as pragmatic as the UK taxman and for the paltry amounts involved ([:(]) he just wasn't that bothered.

  

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Now that's very interesting - perhpas my rotten search success record is because I've been using inverted commas.  I'll have to go to the advanced search page more often.

However, thatnks to all you helpful people I have suggestions of 1.45 from Ron, 1.4534 from SusanAH and 1.459 from Derf...... Not sure whichm if any, of these is the "official" rate.  I think I'll try emailing the "infotax" people next!

Chrissie (81)

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'Phoned the Tax Office yesterday to ask what rate we should use for a South African pension which we do not normally bring into France. They told me to ask the bank for the rates as at 1 January 2005 and 31 December 2005 and to take the average. I would assume that the same equation would apply to the rate for the pound/euro. Of course, the rates given bear little resemblance to the rate we would get if we get if we decided to fetch it here each month.

Anne
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I emailed the infotax people and got back an incredibly quick response, firstly giving me the same long exchange rate of 1.459214942  [blink] and secondly saying, with regard to my query on Premium Bond winnings:

"You have to fill 2 forms : n° 2047 ( pink) and n° 2042 ( blue)
In France we distinguish two kinds of share dividends
A: dividends with a 50% relief : almost all of them
B: dividends with no relief , from companies which activity is the management of a portfolio of transferable securities

On the form 2047 page 2

frame B other dividends  ( premium bonds)
column 1:  name of the country -  UK
col 2 : net amount
col 3 : prorata - for UK it is 11%
col 4 : tax crédit =  ( net amount X 11%)
calculation : col2 + col 4 = ( net amount + tax credit)
then you have to report on form 2042 (blue)  point 2 : revenus de capitaux mobiliers
box TS = net amount + tax credit
box CA  =account charges ( possibly)
box TA = col4 = tax credit "

Now, you'll have gathered that if there is a difficult way of doing things, I'll find it[8-)], but I assume this means that for winnings received of £200, I put £200 in col 2, £22 in column 4, giving a calculation of £222 to be converted into euros and put in TS, and leaving column CA blank....  Anyone agree? disagree?

Chrissie

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[quote user="Spg"]

But this is assuming that premium bond wins are dividends - and they aren't, are they?

Sue

[/quote]

From Taxation In France by Charles Parkinson

"France does not tax lottery winnings, but correctly regards the prizes on Premium Bonds as interest, because the bond is a negotiable instrument (and therefore the "gambler" can recover his "stake)."

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[quote user="Leslauriers"][quote user="Spg"]

But this is assuming that premium bond wins are dividends - and they aren't, are they?

Sue

[/quote]

From Taxation In France by Charles Parkinson

"France does not tax lottery winnings, but correctly regards the prizes on Premium Bonds as interest, because the bond is a negotiable instrument (and therefore the "gambler" can recover his "stake)."
[/quote]

Still not dividends though, are they?

Sue

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Is it different for different areas.  We have been to Tax Office today and they calculated at 1.4385.  Also, don't do what we did and write in the cents.  My tax officer thinks I earn several hundred thousand euros.  Round to the nearest euro.

 

 

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No, I think the French have a different understanding of the word "dividends". Dividends as we would understand them are subject to allowances and are entered into box DC. Premium Bond wins are treated as interest received and are entered into box TS where they are subject to both tax and social charges without any allowances.

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